International Paper Announces Facility Closures

Rhea-AI Summary

International Paper (NYSE: IP) announced the permanent closure of multiple facilities by April 2025, including the Red River containerboard mill in Campti, La., recycling plant in Phoenix, Az., box plant in Hazleton, Pa., and sheet feeder facility in St. Louis, Mo. The Red River closure will reduce containerboard capacity by 800,000 tons annually.

The closures will affect 674 employees (495 hourly and 179 salaried). The company plans to minimize impact through attrition, retirements, and current vacancies at other locations, offering outplacement assistance, mental health support, and severance benefits where possible.

These closures are part of IP's transformation strategy to become a stronger sustainable packaging solutions company by streamlining operations and focusing investments on facilities that will better serve customers.

Positive

• Strategic streamlining of operations to improve efficiency
• Reduction of operational costs through facility consolidation
• Focus on improving quality and service delivery

Negative

• Loss of 800,000 tons of annual containerboard production capacity
• Workforce reduction of 674 employees
• Closure of four major facilities affecting operational capabilities
• Potential severance and closure-related costs

MEMPHIS, Tenn., Feb. 13, 2025 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC) today announced the permanent closure of the company's Red River containerboard mill in Campti, La., recycling plant in Phoenix, Az., box plant in Hazleton, Pa., and sheet feeder facility in St. Louis, Mo. All facilities will cease operations by the end of April 2025. The Red River containerboard mill closure is expected to reduce the company's containerboard capacity by approximately 800,000 tons on an annualized basis. 

In total, 495 hourly employees and 179 salaried employees will be affected. The company will work to minimize the impact on employees by using attrition, retirements and current vacancies at other International Paper locations. Team members at these locations will receive outplacement assistance, access to mental health support resources and where possible, severance benefits.

"The decision to close any facility is difficult because of the impact on our team members, their families and the surrounding communities," said Tom Hamic, executive vice president and president, North American Packaging Solutions, International Paper. "We greatly appreciate the contributions from our departing team members and will do all we can to support them."

International Paper is undergoing a transformational journey to become a stronger sustainable packaging solutions company. A critical step in this journey is to streamline IP's footprint to focus investments on facilities that will best serve customers and accelerate strategic initiatives to improve quality, reliability and service delivery.

About International Paper
International Paper (NYSE: IP; LSE: IPC) is the global leader in sustainable packaging solutions. With company headquarters in Memphis, Tennessee, USA, and EMEA (Europe, Middle East and Africa) headquarters in London, UK, we employ more than 65,000 team members and serve customers around the world with operations in more than 30 countries. Together with our customers, we make the world safer and more productive, one sustainable packaging solution at a time. Net sales for 2024 were $18.6 billion. In 2025, International Paper acquired DS Smith creating an industry leader focused on the attractive and growing North American and EMEA regions. Additional information can be found by visiting www.internationalpaper.com. 

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements reflect management's current views and are subject to risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied in these forward-looking statements. These risks and uncertainties include the risks that we will be unable to realize the anticipated benefits of our closure of the Campti, La., containerboard mill and other facilities. These forward-looking statements are also subject to the risks and uncertainties contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission ("SEC") on February 16, 2024, and subsequent reports filed with the SEC. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in expectations.

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SOURCE International Paper

FAQ

How many tons of containerboard capacity will IP lose from the Red River mill closure?

The Red River containerboard mill closure will reduce IP's containerboard capacity by approximately 800,000 tons on an annualized basis.

How many employees will be affected by IP's facility closures in 2025?

The facility closures will affect 674 employees in total, comprising 495 hourly employees and 179 salaried employees.

Which facilities is International Paper closing in 2025?

IP is closing the Red River containerboard mill in Campti, La., recycling plant in Phoenix, Az., box plant in Hazleton, Pa., and sheet feeder facility in St. Louis, Mo.

When will IP complete the announced facility closures?

All facilities will cease operations by the end of April 2025.

What support is IP offering to affected employees?

IP is offering outplacement assistance, access to mental health support resources, and where possible, severance benefits. The company will also try to minimize impact through attrition, retirements, and current vacancies at other locations.